A research report caused Nokia Oyj Sponsored ADR (NOK.US) stock price to plummet! T-Mobile (TMUS.US) clarifies: not planning to end partnership.

T-Mobile US (TMUS.US) stated that it has no intention of stopping its purchases of networking equipment from Nokia Oyj Sponsored ADR (NOK.US), refuting an analyst's prediction that the telecom giant would switch suppliers. A T-Mobile spokesperson said in an email statement on Tuesday, "T-Mobile has been working with Nokia Oyj Sponsored ADR and Telefonaktiebolaget LM Ericsson Sponsored ADR Class B (ERIC.US) for many years to build the nation's largest and fastest 5G network. We will continue to work with them to ensure that our customers have the best mobile network experience." Following the comments made by EJL Wireless Research President Earl Lum on Tuesday, the stock price of Nokia Oyj Sponsored ADR saw its largest drop in nearly a year. Lum stated that competitor Telefonaktiebolaget LM Ericsson Sponsored ADR Class B has superior technology and may be in a more advantageous position to offer more attractive prices. In recent years, Nokia Oyj Sponsored ADR has lost a significant amount of market share in the United States. Last year, U.S. telecom company AT&T (T.US) announced a $14 billion contract with Telefonaktiebolaget LM Ericsson Sponsored ADR Class B to build a modernized, more flexible "open RAN network." Prior to this, Lum had also predicted that AT&T would abandon Nokia Oyj Sponsored ADR. Another major U.S. carrier, Verizon (VZ.US), has also chosen to use equipment from Telefonaktiebolaget LM Ericsson Sponsored ADR Class B and Samsung Electronics (SSNLF.US) to build its network. An analyst at J.P. Morgan wrote in a report, "If Nokia Oyj Sponsored ADR loses T-Mobile US, it would mean that Nokia Oyj Sponsored ADR's promised transformation in wireless access business technology has failed." "Nokia Oyj Sponsored ADR is proud to be a long-term partner for T-Mobile in the Radio Access Network (RAN) field," the Finnish company said in an email statement. "We are confident in our industry-leading product portfolio, which has helped us increase market share among many existing RAN customers and win new ones." The stock price of Nokia Oyj Sponsored ADR fell by 5.7% on the Finnish stock market, closing at 3.97 euros, marking the largest drop since December 2023. The stock price has risen by 30% year-to-date.